“Welcome to the Best Consumer Goods Company in

the World”
 FMCG INDUSTRY
CPG- Consumer Packaged Goods Industry
Major Activities-Operations,Supply
Chain,Productions,Marketing
Wide Range of Consumables
High Investment
Leading Companies-P&G, Nestle, Reckitt Benkiser,HUL,
Dabur.
 COMPANY PROFILE

The Procter & Gamble Company (P&G) boasts boatloads of

brands. The world's top maker of household products courts
market share and billion-dollar names.
 It's divided into three global units: household care, beauty
and grooming, and health and well-being. The company also
makes pet food and water filters and produces a soap opera.
Some two-dozen of P&G's brands are billion-dollar sellers,
including Fusion, Always/Whisper, Braun, Bounty, Charmin,
Crest, Downy/Lenor, Gillette, Iams, Olay, Pampers, Pantene,
Pringles, Tide, and Wella, among others. P&G shed its coffee
brands in 2008.
 Contd…..
Started in 1837 by William Procter and James
Gamble
First products were soaps and candles
Procter and Gamble has nearly 300 brands in
more then 160 countries
Main Headquarter in Cincinnati, Ohio
Employ 138,000 people
KEY PEOPLE Heading the Industry!!
• Chairman, President, and CEO : Robert A. (Bob)
McDonald

•Vice Chairman Global Operations: Werner Geissler

• Global Brand Building Officer: Marc S. Pritchard

COMPANY MARKETING AND
DISTRIBUTION CHANNEL
 MAIN COMPETITORS
Johnson & Johnson Co.

Kimberly-Clark Co.

Unilever Co.
 TARGET MARKETS

Homemakers Women

Youth B2B
 Why P&G?????
“Best Consumer Goods company in the world”
Brand Value
Distribution network
6th in Fortune 500 most admired company in 2010.
It is credited with many business innovations
including brand management.
Wide Customer base
Wide range of products
Family of Products Under P&G
Personal & Beauty
     - Cosmetics, Oral Care, Hair Care
House & Home
     - Laundry care, Dish Soap , Snacks
Health & Wellness
     - Prescription drugs, Health Care
Baby & Family
Pet Care & Nutrition
 PRODUCTS
Biggest Manufacturer of Household products with over 250
products
Six Main Categories
 Laundry & Cleaning
 Paper Goods
 Beauty Goods
 Food & Beverages
 Feminine care
 Health care
 CUSTOMERS
 Malls
 Retail stores
 Local grocery stores
 Direct marketing
 Government & Corporate agencies
 E-Business
 CATEGORIES OF RAW MATERIALS
USED!!
 A- Animal Origin
 N- Natural raw materials
 NK- Natural raw materials extracted with the
help of chemicals
 NB- Natural raw materials to access other properties
of raw materials
 NS- Natural raw materials treated and combined with
chemicals
 S- Synthetic raw materials
 EMPLOYEES
Procter & Gamble has over 1,30,000+ employees.
In October 2008 it was named among Canada’s Top
100 Employers and also Greater Toronto’s Top
Employers.
1,30,000 + employees working in 80+ countries.
 PROCESSES UNDERTAKEN
Innovation
Recruitment
Recycling
Sustainability
Procurement
Fulfillment
Production
 INNOVATION
• P&G has demonstrated that its success depends on its customers, people, and
innovation.

• P&G’s growth from its humble beginnings to the company it is today is the result of a
constant stream of innovation facilitated by knowledge management.

• Management had planned to create a more nimble organization and to increase the
speed and quality of innovation. They also focused on improving the speed of
commercialization of new products.

•  Another innovative play-to-win strategy that P&G management had adopted was the
acquisition of its domestic and foreign competitors. P&G acquired a number of other
companies that helped diversified its product line and increased profits significantly.

Main innovation focus is in the following areas:

1)Product formulation / colloid chemistry 2)Specialty polymers

3)Bleaching 4)Cleaning
5)Oral care and diseases 6)Packaging
 STAGE STAGE
STAGE I STAGE II
III IV

Steps they have taken include:

(I) Establishing clear leadership from the very top of the organisation;

(II) Creating a vanguard of people charged with kick-starting activities that bring new
opportunities into the organisation from outside P&G;

(III) Developing training courses to help disseminate the necessary skills across
increasing numbers within the organisation;

(IV) Acquiring and developing KM tools by appointing staff to increase the effectiveness
of this effort.
 INTERACTION 1.0
SECTION Selects Selected
requisites D1 database
HEAD
people

TRAINING
PROG.
2.0 Trainee
D2 database
Training people

CONDUCTING 3.0
INTERVIEWS Appointed
Appointing staff D3 database

4.0
Using selected Development
ACQUIRING AND D4 database
DEVELOPING KM TOOLS staff for
development
Innovation Examples:
1)Ready-to-go Technologies
Procter & Gamble introduced Bounce, the world's first dryer added softener, after
acquiring the product technology from the independent inventor who developed the
innovative fabric-care solution.

2)Ready-to-go Packaging
Several of Olay Skin Care products now utilize new consumer-preferred pump
dispensers originally developed by a European packaging products company.
 HIRING PROCESS @ P&G
• Famous mantra- We hire the PERSON, not the position
• At P&G ,the hiring process is very rigorous.
• Throughout the process, standardized assessment is done and an
interviewing framework is designed to identify unique strengths
and provide a comprehensive overview of your skill, experiences
and abilities.
• Undertaken by the HR Department
 Five steps Process…….
1. Application: You can search and apply for jobs as well
at www.experiencePG.com. Once you have submitted
your application, you will be contacted regarding next
steps.
2. Assessment: P&G uses online assessments to measure
skills and accomplishments that generally do not emerge
from interviews. These assessments are critical as they help
determine if it is equally beneficial for you to continue
through the hiring process.
• Success Drivers Assessment (Online)
• Reasoning Screen (Online)
• Reasoning Test (In-Person)
3. Initial Interview: Use behavioral-based interviews to get
to know you. The real you. What makes you tick? What
have you accomplished so far? Believe in two-way
communication.
4. Final Interview: greater detail around skills and
capabilities. Taking place either on campus or on-site at
P&G.
5. Your Offer and Your Future: Congratulations! You’ve
proven you have a lot to offer.
 online forms 1.0
APPLICANT
Improperly Inspect forms
Filled forms Registrar
Applied applicants info
2.0 D1 applicants
records
Input applicant
Region and date
information
Options for
interview Registrar
Validated forms’ info
3.0 D2
interview
Enroll for
schedule
interview,test
Registrar
Interview details
Selected date 4.0
And region Conducts D3
For interview interview selected
HR Professional interviewees
 RECYCLING
Every consumer goods company generates some material
that cannot be used or sold. At P&G, that material ranges
from shampoo wash-out and wood pulp to outdated
mascara. But through GARP program, they keep such
materials from disposal by determining creative alternate
uses.
 STEPS IN RECYCLING PROCESS
Industrial wastage(unused product) from manufacturing
department.
Consumer wastage(scrap) to the recycling unit.
Segregating scrap and unused product for recycling and
maintaining documents accordingly.
Mixing of scrap material.
Material refining
Converting waste into useful material.
 SCRAP Consumer
Production e.g plastics, wrappers,
Industrial waste waste
department bottles etc recycling

Material
Mixing

Material
refining

Packaging Recycled Useful Selling

department material department
 PERSONS INVOLVED

 Much more than recycling, GARP (Global Asset Recovery

Purchases) turns “garbage into good
 GARP team is charged with finding external partners who can turn
waste and non-performing inventory into something useful. So
when a P&G site has something they haven’t been able to recycle,
GARP steps in to help.
 In the last year alone, this small group of garbage gurus has diverted
tens of thousands of tons from landfills and has delivered tens of
millions of dollars in cost recovery to the company by selling or
donating materials to others who can reuse the materials.
 EXAMPLES
China: Softer, Younger-Looking Leather
Budapest, Hungary: Making Energy from Scraps
 ROLE OF ERP
 SAP solution and services
SAP Recycling Administration
 Implementation Highlights
 Speedy implementation without interrupting production.
 Excellent cost/benefit ratio.
 Benefits
 Reliable tracking of the quantity flows of packaging, products and
devices, and batteries in circulation
 Classification of packaging and equipment in accordance with
country-specific requirements
 Increased data quality
 Extensive reporting support
 Central storage of master data
 Existing Environment
 SAP ERP
 Hardware: Hewlett Packard
 Operating system: HP-UX
 PROBLEMS/INEFFICIENCIES
“We only have to enter the data once, and all our staff around
the world can access it immediately. In the past, data had to
be entered several times.”
-Dietmar Giljohann, REA® Systems Manager.

New brands create new challenges.

International network for data entry.
Cost and time of project.
CONSERVATIVE AND SUSTAINABILITY PROCESS

P&G has a strong history of reducing the environmental

footprint and cost of operations. Their production-adjusted
footprints have been dramatically reduced since 2002, with such
sustainability-driven reductions also resulting in significant cost
saving.
 STEPS AND PERSONS INVOLVED
 Operating site personnel and staff resources.
 At the facility level, Site Sustainability Leaders identify
opportunities to reduce P&G’s impact across four environmental
footprints: waste, water, energy, and CO2.
 These Site Sustainability Leaders recruit a steering team from within
their site, with representatives from the various businesses at the site.
 Once they deploy objectives for footprint reductions, the steering
team develops an action plan with prioritized ideas to meet those
objectives, and facilitates the execution of plans. The steering team
generally meets monthly.
 Teams of volunteer on site work toward achieving the objectives.
The steering team is responsible for communicating results back to
the site.
 DELAYS INVOLVED

Delays involved could be related to ignorance of

suppliers following the scorecard .
ROLE OF ENTERPRISE SYSTEM
Execute the process
Capture and store process data
Monitor the process
 BUSINESS PROCESSES INVOLVED
Procurement process

Production process

Fulfillment process
 PROCUREMENT PROCESS
Def: series of steps undertaken to acquire necessary
materials
 Flow of processes

WAREHOUSE PURCHASING WAREHOUSE

ACCOUNTING
FLOW DIAGRAM
 PROCUREMENT PROCESS
Purchase requisition

Can be divided into: Purchase order

Physical flow
Packing list
Document and data flow
Goods receipt document

Information flow Vendor invoice

instance-level
Vendor payment
process-level

Financial flow
Production Process 
 DETERGENT SLURRY
FORMULATION 

SLURRY PREPARATION 

DETERGENT SPRAY DRYING 

PNEUMATIC CONVEYING,
PERFUMING & PACKING 
 Step 1 : DETERGENT SLURRY FORMULATION 
Detergent formulations essentially consists of :
Active ingredients
STPP
Filler (e.g. Sodium sulphate)
Silicate
Normal active ingredients used for Ariel are linear
alkyl benzyl sulphonates. 

COMP provides entire technical know-how starting

from formulation to final packing of the dried
detergent powder.
 Step 2 : SLURRY PREPARATION 

The plant layout for Ariel formulations consists of a feed-

preparation section feed pumping to the nozzle atomizer,
dried- powder conveying and dosing, followed by thorough
blending, screening and packaging.
Linear alkyl benzene sulphonate paste , is metered into a
slurry preparation tank together with metered sodium silicate
solution, and solid phosphates, sulphates and additives.
Materials after blending are conveyed to an ageing vessel.
Mixing is carefully controlled to prevent aeration of the slurry.
 Step 3 :DETERGENT SPRAY DRYING 
 
Free flowing, non dusty, non caking detergent products
in bead form are produced by Spray Drying mostly in
counter current flow using pressure nozzle atomization. 
Hot air from direct fired air heaters is used for Spray
Drying
 Step 4 : PNEUMATIC CONVEYING,
PERFUMING & PACKING 
The dried detergent powder is pneumatically conveyed
from the Spray Dryer to the product silos after sieving.
Here filtered atmospheric air is used as the cooling &
conveying media.
The detergent product from the silo is then blended along
with the perfume in a continuous mixer after which it is
packed.
 FULFILLMENT PROCESS
 Also known as order-to cashprocess, it includes all steps
necessary to take an order from the customer :
 Fill
 Pack
 Shipping and

 Receive Payment for it.

 Companies handle fulfillment two ways: by doing it in-house,

or by outsourcing.
Two of the most common strategies for fulfillment process are :

1. Sell-from-stock : involves fulfilling customer orders directly from

the company’s inventory of finished goods. It is common among
companies that sell directly to the consumer via retail, like high
volume low cost operations such as grocery stores, fashion
retailers , etc.
2. Configure-to-order : Involves taking a standard or base model of
a product and then configuring it to meet the customer’s special
needs by adding special options.

It is common in low-volume, high-cost industries that require

specialized products, like chemical and petroleum industries.
Most full-service order fulfillment companies will offer the following basic
services:

1. Storage / Warehousing: The fulfillment company will....

• Receive the product and provide inbound quality check.

• Provide storage for the product (typically on a monthly basis).
• Provide inventory control management services, including on-line, real-time
access to inventory.
• Monitor and process inventory replenishment.

2. Order Processing: The fulfillment company will....

• Receive orders directly from your customer via phone, fax or Internet.
• Provide pick and pack services fulfilling the orders.
• Provide full case distribution and full pallet distribution.
• Add insertions to the order.
• Provide kitting and assembly services as needed.
• Provide contract packaging and specialty labeling services.
3. Returns and Exchanges: The fulfillment company
will....

•Examine and process any returned item.

•Restock the item into inventory.
•Reship a replacement item when necessary.

4. Administration: The fulfillment company will....

•Provide call center services.

•Handle all invoicing/billing.
•Be an extension of your customer service department.
ROLE OF ENTERPRISE SYSTEMS IN THE FULFILLMENT
PROCESS
 Execute the process
>Create a quotation
>Create sales order
>Prepare shipment
>Send shipment
>Create and send invoice
>Receive and Process payment

 Capture and store Process data

 Monitor the process

>Instance-level information
> Process-level information
 FINANCIAL HIGHLIGHTS
Fiscal Year End: June

Revenue (2010): 78938.00 M

Revenue Growth (1 yr): (-0.10%)

Employees (2010): 127,000

Employee Growth (1 yr): (-5.90%)

ACCOUNTS
 CHART OF ACCOUNTS
Some of the accounts included in P n G financial
statements are :
1. Machinery and equipment
2. Plant
3. Building
4. Goodwill
5. Inventories
6. Accounts receivable
7. Accounts payable
8. Depreciation
9. Prepaid expenses
10.Deferred income tax
11. Cash and cash equivalents
12. Fuel and power
13. Salaries
14 . Sales
15. Purchase
16. Excise duty
17. Trademark and patents
18. Bad debts
19. Stationery
20. Selling and administritive
Submitted by:
Aakriti Juneja
Abhinav Sharma
Amita Punjani
Arun Rana
Ashray Mishra
Astha Vishwakarma
Dimple Batra
Divya Kaushik
Ekta Chawla
Gaurav Chaudhary